Chinese chip maker Fujian Jinhua is accused of stealing US technology. This time, China is fully prepared to fight back
- Billy Huang says the US indictment is only the latest twist in the long-running saga of its complaints about China’s intellectual property theft. Beijing’s steely response, as expected, only ratchets up the tension over the trade war
On November 1, the US Department of Justice issued indictments against Jinhua, Taiwan-based United Microelectronics, and three former Micron employees for economic espionage and stealing the trade secrets of Micron, an industry leader. Before the Department of Justice took action, the US Commerce Department added Jinhua to a list of companies banned from buying components, software and technology goods from US firms. As chip manufacturing demands the seamless integration of the supply chain and American companies dominate the field, the move has strangled Jinhua and crippled China’s chip industry as a whole.
In a statement issued after the US indictment, Jinhua stressed that it “attaches great importance to the protection of intellectual property rights, and there is no theft of other company’s technology”, and added that “Micron has always taken Jinhua’s development as a threat”.
The Chinese government has always denied any allegations that there is widespread theft of American technologies. On July 18, Ministry of Foreign Affairs spokeswoman Hua Chunying came out swinging at a regular news conference for foreign correspondents.
China’s deputy minister of commerce, Wang Shouwen, gave a rather confusing picture when asked about Micron and the Jinhua case during his trip to Washington DC for talks on the trade war. Officials familiar with the talks quoted the minister as saying that Micron and Jinhua “are like brothers, and brothers fight”.
It’s understandable that the trade complexities between China and America do not fit into any simple narrative. But if we take Beijing’s own words seriously, it shows a clear pattern of a “whole society” approach in efforts to reshape the world order, especially in technology catch-up. In the Jinhua case, the chip maker, the commerce ministry, the foreign ministry and the courts have all played a role.
Billy Huang is a media veteran who served leading media outlets in Beijing, Hong Kong, Singapore and America for more than 20 years. [email protected]